Eskom and Sasol Have Signed A Gas-For-Power MoU Agreement
Friday, September 20, 2024
Eskom and energy and chemical company, Sasol, have signed a Memorandum of Understanding (MoU) to "collaboratively explore and research potential future liquified natural gas (LNG) requirements".
This really is according to a joint statement by the two providers, following the signing ceremony from the MoU on Friday.
"The collaboration aims to find out the likely volumes that South Africa demands to establish a practical LNG import sector, together with the enabling infrastructure, and can be facilitated by authorities-to-federal government relations where by required."
"This initiative concentrates on making use of gas for electric power generation to deliver vital base load electric power and position gas like a key enabler of re-industrialisation, even though also making sure continued supply to the marketplace by unlocking world LNG resources.
"Furthermore, the collaboration will contribute to enhancing South Africa’s energy mix and enable the country's energy transition and decarbonisation," the joint statement read.
The MoU is expected to "explore sourcing gas within South Africa, the Southern African Development Community region, and other parts of the African continent, in addition to evaluating long-term LNG contracting".
"This will support the gas requirements for Eskom’s planned coal power station repowering and conversion to gas in the long term. The parties will also engage other state entities to enable an LNG value chain in South Africa.
"As part of its revised gas strategy, Sasol is working on sasol enabling the future supply of LNG to South Africa by collaborating with companies such as Eskom, existing and future customers, suppliers, and infrastructure developers.
"The research click here findings from the first phase of the Sasol-Eskom collaboration will guide the necessary role players and investors required to offer the best prospects for South Africa's energy market, while outlining the challenges associated with the long-term commitments required for LNG imports," the statement said.